How To Use Turbo Tax to File Income Taxes

Skip your trip to the post office with Turbo Tax.

Turbo Tax is a way to file your taxes for free or at low cost, from the comfort of your own home behind your computer screen. Turbo Tax's online filing option eliminates the need to wait in line at the post office---a benefit if you wait until the last minute and anticipate long lines at the post office.

Things You'll Need

• Computer with Internet access
• Last year's federal return and/or state returns
• Your Social Security number
• Birth dates and Social Security numbers for dependents claimed on your return
• W-2s for all employment, including spouses if filing jointly
• All 1099 statements
• Year-end investment statements
• 1098 mortgage interest statements and documentation of real estate taxes paid
• Details on cash and non-cash charitable contributions you have made
• Details of self-employment income and expenses
• Details of documented unreimbursed job-related expenses
• Details of medical and health care expenses

Instructions

1. Go to turbotax.com and click the blue "Start" button indicating what type of return you will need. If you have a simple tax return you may use the free edition (you'll still have to pay to file your state return, but your federal tax return will be free). Otherwise you will need to choose the package appropriate for your activities to maximize your business tax deductions. If you own a home, made donations or had medical expenses, use the Deluxe edition. If you own stocks, bonds, mutual funds or rental properties, use the Premier edition. If you're a sole proprietor, consultant, contractor or single-owner LLC, use the Home and Business package; if you have a corporation, partnership or multi-member LLC, choose the Business package.

2. Click the "Create an Account" option if you are a first-time user; otherwise, enter your User ID and password in the box at upper right to log in.

3. Follow the prompts on the screen, which will guide you through the process. Once you have logged into your account, the gray tabs at the top will help you navigate to different segments, such as "Personal Information" or "Federal Taxes." If you have questions, check the blue links to the right of the screen, which highlight answers to questions asked frequently by prior users.

4. In the "Personal Information" section, fill out information about your family, what's new and changed in your tax situation, and confirm that your information is accurate.

5. In the "Federal Taxes" section, fill out information about your wages and income (using figures from your and your spouse's W-2 forms) and respond to questions to ascertain if you will receive tax credits or deductions.

6. In the "State Taxes" section, confirm that Turbo Tax has properly transferred the info from your federal tax return to your state tax return.

7. In the "Wrap Up" section, review the information entered and view the amount you will need to pay or will receive from your state and federal returns. If you are filing a complex return you may be walked through additional stages at this point regarding your company or medical expenses. Follow prompts and fill out information completely.

8. Finish in the "Print and File" section. Fill out payment information regarding how you will pay Turbo Tax and the federal and/or state governments. Indicate how you would like to receive any tax refunds owed by filling out your bank account number to receive payment via direct deposit or indicating a mailing address where a check can be sent. Click the "Print/Save for your records" option at upper left to finalize. If you choose not to e-file, print a copy of your return and send via mail. Save an additional hard and soft copy for reference the following year.

References

• Turbo Tax Tax Preparation Software
• New York Times: A Side-by-Side Look At Tax Software